Solar panels are all the rage today but do they really live up to all the hype? more importantly is installing solar panels a good choice for you? You are likely to be met with utter confusion when you start researching about solar panels, its benefits and cost effectiveness to the average american. We will try to simplify the questions regarding solar panels and its value to you as consumer by asking ourselves a few questions so lets get started.
How much do you pay for electricity?
Your current utility costs is probably going to be one of the largest factors that determine whether or not installing solar panels is going to be a cost effective solution for you. When you receive your electric bill every month it is calculated based on how much electricity you use measured in Kwh (Kilo watts per hour) and depending on where you live this could cost you anywhere from 8 to 20 cents per Kwh or more.When you install solar panels the financing solution you decide to go with will play a role in overall cost effectiveness over time: buying the system outright, leasing the system, or going with a (PPA) power purchase agreement. The reason I added in the way that you buy your solar panels is because you will be effectively generating your own power and whether or not you own that power or negotiate a fixed rate to buy back that power through a power purchase agreement (PPA ) has an impact on the amount of money you could potentially save. Ultimately the goal would be to have a lower cost per Kwh with your new solar panel system than the rate that you pay to the utility company.
How much sunlight is your roof exposed to?
The amount and time of sunlight your roof is exposed to is directly related to the amount of electricity you will be able to produce. Your roof should be south facing and sloped at an angle between 15 to 40 degrees with little to no shade from the surrounding vegetation for the best results. Keep in mind that this is the best case scenario and not conforming to the previous stated conditions does not mean you will not be able to install solar panels, however your efficiency for a system of the same size will be less than its counterpart that has the optimal conditions as stated above. You can actually find out the efficiency of installing solar panels on your home using the solar estimate calculator.
How much electricity do I use on a daily basis?
The amount of power that you use on a daily basis is going to be directly related to the size of your solar panel system. If your daily electric consumption is very high you are going to need a larger system which in turn translates into a higher system and installation cost. It should be noted that the cost associated with the purchase and installation of solar panel systems have been dropping every year since 2009 and with current trends will in all likelihood continue on this downward path.
How old is my roof?
The last question we need to ask is what is the age and condition of my roof? Typically roofs are good for 20 to 25 years depending on the roof type and other factors like location. It is recommended that you have a good roofer take a look at your roof to give you a good estimate on its condition before you consider installing a solar panel system in your home. It would be a total let down to have your installers come out to give you an estimate only find out that before they can install your system you have to replace your roof.
In summery under most circumstances installing solar panels is a solid investment that will likely save you thousands of dollars in energy cost in the long run. In addition to the money you ultimately save on electricity you add value to your home, so that when you go to sell you can ask for a premium on your sales price. If you buy your system vs. leasing or doing a power purchase agreement you will also be eligible for a solar investment tax credit or ITC, which is a 30 percent federal tax credit on your system that is available through 2022. Learn more about the ITC.
Well I hope you guys enjoyed reading this article as much as I enjoyed writing it, more importantly I hope that I was able to answer any questions you may have had regarding the value or lack thereof of installing solar panels on your home.
